Dr Christoph Leitl, president of the European Business Circle and head of the ‘Stop Bureaucracy’ initiative, has urged EU policymakers to move from analysis to action and revive Europe’s competitive edge.
Speaking with Euractiv, Leitl said Europe’s credibility depends on cutting red tape, accelerating enlargement, and unleashing the innovative potential for its entrepreneurs – before political inertia turns today’s ambitions into tomorrow’s missed opportunities.
EV: The Draghi Report set out an ambitious roadmap to strengthen Europe’s competitiveness. Do you see the Commission moving fast enough? What concrete steps must follow, to turn that vision into reality?
CL: The Draghi Report was an analysis with a clear goal: to strengthen Europe as a business location through very concrete measures. But the Commission is lagging – very few steps have been taken; however, we have no time to lose! Europe is falling back as a business location compared to other economies.
We urgently need decisive and targeted actions. Stop bureaucracy, complete the internal market, and strengthen creativity among young people across Europe – that’s our most important raw material. Schools should focus on creativity, not just memorising dates and figures. I urge the Commission to act quickly, especially as Parliament has now stopped the bureaucracy omnibus.
There will be another vote in November, but I have the feeling that some members are not fully aware of the seriousness of the situation. The choices we make now will define the responsibility of our generation, not the next.
EV: Europe faces growing competition from the US, China and emerging economies. What’s holding the EU back from acting as a united and competitive global player?
CL: We remain one of the strongest business regions in the world, but we are falling behind. China is performing very well, the US too, and India is rising. Other economies – Brazil, South Africa, Indonesia, and Vietnam – are also catching up. We now live in a multipolar world. American dominance will decrease, others will rise, and Europe’s position must adjust accordingly.
To remain a strong voice and defend not only our values but also our interests, we need a united Europe – one that doesn’t block itself through narrow national interests. For difficult questions, we need qualified majority decisions, because veto politics is not democracy. Division prevents us from taking the right measures. Europe must present a strong face to the world, because nationalism is not an option. We either swim together or sink alone.
EV: What political or institutional changes are needed to overcome Europe’s inertia – both in pursuing enlargement and in deepening internal reforms?
CL: We are currently discussing enlargement. Look at the Western Balkans or some Eastern European countries – they are so strongly in favour of Europe. I’m always touched by their hope, while some of those already inside the Union are frustrated. If we want enlargement, and I believe it is necessary, we must update our internal rules.
Take VAT as an example: if one or two countries are saying “no”, the topic is dropped – but that is not sustainable. It damages Europe’s credibility in the world. We need cooperation with all regions.
It was a mistake to abandon TTIP. Had we concluded TTIP, it would be much harder for Donald Trump to play with us today. The same applies to MERCOSUR – we must move faster. I hope that after Indonesia, India will follow too. Europe needs friends and partners around the world, respecting their cultures and values. To say “do as we say” is not partnership – that’s colonialism. We must learn the lessons. If we want friends, we must treat them as such.
Internally, bureaucracy is our biggest problem. It’s killing competitiveness. I’m not sure every Commissioner or MEP fully realises that.
I share our European values, but overregulation and excessive red tape are crushing small and medium-sized enterprises. They are frustrated – they should innovate, not fill out endless paperwork. The same problems exist in healthcare, education, and policing.
Policemen should be on the streets, not behind desks writing reports. My message is simple: Stop bureaucracy. Those who think it’s not important fail to see how it undermines Europe’s future.
EV: Cutting red tape has been an EU promise for a long time. Where do you see the quickest wins – and what must change to ensure new rules don’t create fresh burdens for businesses?
CL: I think Valdis Dombrovskis is doing a good job, but how many of his fellow Commissioners really understand what he’s trying to achieve – and how many follow?
They should visit small enterprises and see the burden first-hand. The EU Corporate Sustainability Due Diligence Directive, for example, is well-intentioned, but risks overburdening companies. We are against child labour and environmental damage – we all share those values – but compliance should be based on trust and cooperation, not constant control and punishment.
We also need to complete the internal market, ensure access to finance, and develop a European energy policy. Many companies are relocating because of high energy costs.
Energy in the US is much cheaper – why not in Europe? We must provide affordable, reliable energy and technological openness. Electric mobility is important, but why ban other technologies? The target is carbon neutrality by 2050; however, you get there should be your choice. Companies need clarity and predictability, not policy U-turns.
Europe faces major challenges, from the climate crisis to geopolitical tensions, but we can only meet them with a strong economy. The US and China pursue their own interests decisively. Europe must do the same – with clear messages and concrete actions, not endless discussions.
EV: At this point in 2025, do you see Europe delivering on its competitiveness agenda – or still stuck in analysis and announcements?
CL: We need to move faster. Europe is good at analysing and announcing, but poor at delivering. I hope we will finally tackle bureaucracy and make decisions that strengthen competitiveness. Commissioners who don’t understand or don’t want to understand business reality should step aside.
The world is changing daily, yet we keep watching and waiting. “Let’s wait and see” means losing the competitive edge. We see the challenges and the solutions, yet we act too slowly. If Europe doesn’t achieve stronger results next year, we risk losing our future.
People have elected us to take responsibility – not just to discuss. Stopping bureaucracy was possible; instead, they stopped the omnibus. It’s absurd. Policymakers must realise the urgency – we can’t afford complacency.
EV: What’s your message to Europe’s SMEs and young entrepreneurs who feel held back by regulation and lack of access to finance?
CL: You have ideas – realise them! We will support you by improving the education and skills system and ensuring access to finance. America has a free capital market; China has a state-controlled one – Europe has neither. We must fix that.
Entrepreneurs create jobs, develop talent, and pay the taxes that fund our priorities, from climate action to security. When we discuss billions in spending, we should remember where that money comes from. Those who generate it – businesses – must be supported, not strangled by bureaucracy. It’s a historic responsibility, and we must rise to it.
(BM)
